Work Environment and Work Discipline as Determinants of Employee Performance in Public Procurement: The Mediating Role of Work Motivation

Abstract

Public sector organizations face increasing pressure to improve accountability, efficiency, and service quality, particularly in public procurement, which is subject to strict regulation and high financial risk. Despite the adoption of digital systems and performance-based policies, employee performance in procurement units remains inconsistent. Prior studies report mixed evidence on the effects of work environment and work discipline on performance, while limited attention has been given to the underlying psychological mechanisms. The mediating role of work motivation in this context remains insufficiently examined. This study analyzes the effects of work environment and work discipline on employee performance in public procurement, with work motivation as a mediating variable. It applies a quantitative survey design using data from 42 employees of the Goods and Services Procurement Unit of the Bojonegoro Regency Government, Indonesia. Data were collected through structured questionnaires and analyzed using Structural Equation Modeling with the Partial Least Squares approach. The results show that the work environment and work discipline have positive, significant effects on employee performance. Both variables also significantly influence work motivation. Work motivation, in turn, has a significant positive effect on employee performance and partially mediates the relationships between organizational factors and performance. The study concludes that employee performance in public procurement can be improved through an integrated approach that combines a supportive work environment, consistent discipline, and motivation-based management practices. These findings provide empirical evidence on the mediating role of motivation in public sector performance models.